State Street Expands Long Partnership With Thornburg to Support New ETF Share Classes

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Key Terms

etf financial

An ETF, or exchange-traded fund, is like a basket of different investments such as stocks or bonds that you can buy or sell easily on the stock market, just like a regular share. It allows people to invest in many companies at once, making it a simple way to grow savings without picking individual stocks.

etf basket creation technical

ETF basket creation is the process by which authorized traders gather the exact list of stocks or bonds an exchange-traded fund (ETF) wants and exchange them with the fund manager for newly issued ETF shares. This mechanism matters to investors because it keeps the ETF’s market price in line with the value of its underlying holdings, supports liquidity (so you can buy or sell without big price swings), and helps the fund track its target index accurately—think of it as swapping a box of individual groceries for a prepackaged meal so the store can stay stocked and priced correctly.

create‑and‑redeem order management technical

Create-and-redeem order management is the process by which special market participants arrange the creation of new exchange-traded fund (ETF) shares or the redemption of existing ones by delivering or receiving the underlying assets or cash. It matters to investors because well-managed orders keep an ETF’s share price close to the value of its holdings, improve liquidity, and reduce trading costs—like a mint that issues or melts coins to keep their market value aligned with the metal inside.

transfer agency financial

A transfer agency is the service or department that keeps official records of who owns a company’s or fund’s shares and handles changes in ownership, transfers, share issuance, dividend payments and investor communications. Think of it as the ledger-keeper and post office for stock ownership: accurate, timely record-keeping and handling of transactions matters to investors because it ensures they receive dividends, can buy or sell shares, and have their voting and ownership rights recognized without delay or error.

closed‑end funds financial

Closed-end funds are pooled investment vehicles that issue a fixed number of shares which trade on stock exchanges like a company’s stock, rather than being continuously bought or sold by the fund itself. They matter to investors because the market price can differ from the fund’s underlying asset value—trading at a discount or premium—so you can gain or lose extra value beyond the fund’s investments, and they often use leverage and aim to pay steady income, affecting risk and return.

ucits regulatory

UCITS is a European regulatory standard for pooled investment funds that sets common rules on how they are run, what they can invest in, and how they protect individual investors. Think of it like a certified recipe and passport for retail funds: it assures basic safeguards such as diversification, liquidity and clear reporting, which helps investors compare options, reduces risk of surprise practices, and makes funds easier to buy across borders.

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04/09/2026 - 08:30 AM

BOSTON & SANTA FE, N.M.--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced the expansion of its nearly 40‑year relationship with Thornburg Investment Management, Inc. (Thornburg), providing end‑to‑end servicing support for Thornburg’s new ETF share classes as the firm broadens access to its active, high‑conviction investment strategies.

Thornburg is a privately owned, global investment firm managing approximately $57 billion in client assets¹ as of March 31, 2026. Headquartered in Santa Fe, New Mexico, the firm is known for its disciplined, research‑driven approach across equity, fixed income, multi‑asset, and alternative strategies, serving institutions, financial professionals, and investors worldwide.

Under the expanded mandate, State Street will deliver comprehensive ETF servicing for Thornburg’s new share classes, including custody, accounting, ETF basket creation, create‑and‑redeem order management, ETF settlement, transfer agency, and reporting. The announcement marks only the second active ETF share-class servicing mandate in the US, with State Street serving as provider, underscoring momentum among active managers seeking greater flexibility in how they deliver their strategies to investors. This highlights State Street’s position as a pioneering leader and enabler of clients’ ability to come to market with novel products. As the number one provider of ETF services globally, State Street is once again paving the way for the industry’s ability to innovate at scale.

The expansion builds on a relationship that began in 1987. Today, State Street provides full‑service support across Thornburg’s product lineup, including mutual funds, ETFs, closed‑end funds, and UCITS vehicles.

“Thornburg has a long history of delivering differentiated, actively managed strategies, and we’re proud to support the continued evolution of their ETF platform,” said Donna Milrod, chief product officer at State Street. “Our role is to provide the operational scale and flexibility that allows clients to focus on investment outcomes, while ensuring a consistent and seamless experience across fund structures.”

Thornburg first partnered with State Street to launch its initial suite of active ETFs in January 2025. The introduction of ETF share classes represents a natural extension of that platform, reflecting growing investor demand for choice and flexibility in accessing active strategies.

“State Street has been a trusted partner to Thornburg for decades,” said Mark Zinkula, CEO of Thornburg. “Their deep experience across fund structures and their ability to support the full ETF lifecycle positions them well to help us meet evolving client needs.”

About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $53.8 trillion in assets under custody and/or administration and $5.7 trillion* in assets under management as of December 31, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 52,000 worldwide.

*Assets under management as of December 31, 2025 includes approximately $173 billion of assets with respect to SPDR^® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated.

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The Advisor and certain Portfolios have received an exemptive order from the Securities and Exchange Commission permitting these Portfolios to offer both a mutual fund share class and an exchange-traded share class that operates as an ETF. Under this structure, the ETF class shares are listed and traded on a national securities exchange and are generally bought and sold at market-determined prices, whereas the mutual fund share classes are purchased and redeemed at the Portfolio’s net asset value next determined after receipt of the order. Because all of the classes of a multi-class Portfolio are based on the same portfolio, transactions through one class could generate portfolio transaction costs and tax consequences for shareholders in other classes. In addition, shareholders of the mutual fund and ETF classes of a multi-class Portfolio will have differing shareholder rights with respect to exchange privileges, how shares are purchased and redeemed, the timing of dividend declarations and payments, and the timing and ability to automatically reinvest dividends. For additional information regarding these differences, please see the applicable multi-class Portfolio’s prospectus.

Each Fund’s ETF Class shares are listed and traded on a national securities exchange and, unlike the Fund's mutual fund class shares, are not individually redeemable. In addition to ETF Class shares, the Fund offers one or more classes of mutual fund shares. An investment in the Fund’s ETF Class shares is not an investment in a mutual fund.

The Fund's ETF Class shares are distributed by ALPS Distributors, Inc.

¹ Includes $56 billion in assets under management and $1 billion in assets under advisement as of March 31, 2026.